Shaw Communications Inc. Annual General Meeting January 13, 2011 - PowerPoint PPT Presentation

Shaw Communications Inc. Annual General Meeting January 13, 2011

Forward Looking Disclaimer Certain statements included in this presentation may constitute forward-looking statements, including, without limitation, those appearing under "F2011 Guidance". Such forward- looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The discussion of risk factors and the discussion under the heading “Caution Concerning Forward-Looking Statements” contained in the Company's Management’s Discussion and Analysis for fiscal 2010 and for Q1 2011 (see our fiscal 2010 Annual Report and Q1 2011 MD&A, filed by the Company with the U.S. Securities and Exchange Commission, under Forms 40-F and 6-K, respectively, and with the Canadian securities commissions; also available at www.shaw.ca) state material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking statements and state material factors and assumptions that were applied in drawing conclusions or making forecasts or projections set out in the forward-looking statements. This discussion of factors and assumptions is expressly incorporated by reference in this document and should be read in conjunction with this document. 2

Table of Contents I. Investor Highlights II. Fiscal 2011 Guidance III. Operating Performance IV. Financial Performance V. Shaw Media Update VI. Wireless Update VII. Recent Financing Activity VIII. Q1 2011 Review IX. Conclusion 3

2010 Annual General Meeting A Leading Communications & Entertainment Provider Consumer Conventional Broadcasting To Be Launched in 2012 Shaw holds approximately 20 MHz of AWS spectrum across Western Canada Shaw Cable Shaw Internet Specialty Broadcasting Classic Cable High-Speed Lite Channels Operated by Shaw Media Digital TV High-Speed Internet HDTV High-Speed Extreme High-Speed Warp High-Speed Nitro (67%) (50%) Shaw Home Phone Home Phone Basic Home Phone Lite High Definition (67%) (58%) Home Phone Basic Advanced HDPVR Business (50%) (50%) (50%) (68%) SOHO Business Solutions Channels Not Operated by Shaw Media (49%) (49%) (38%) 4 (50%) (50%)

2010 Annual General Meeting I. Investor Highlights • Our current market capitalization is approximately C$9 billion and in 2010 Shaw became the largest cable company in Canada with over 2.3 million basic customers • Including satellite, we distribute video to over 3.2 million Canadian consumers • This represents approximately 30% of the Canadian pay-TV market • As of August 31, 2010 we had an internet penetration rate of almost 80%, maintaining the highest Internet penetration of our Canadian peers, and we were the first company in North America to introduce DOCSIS 3.0 • We are currently in the testing phase of a usage-based billing model for our Internet service, which follows the launch of similar plans in the Canadian market • We are currently notifying customers who are exceeding their usage cap • This will be followed by a monthly charge and/or the purchase of additional data packages • Customers who are significantly over their current usage cap are encouraged to upgrade tiers to properly reflect their usage level while improving their Internet speeds • In the future, we believe our usage based billing plan will enable the further monetization of our Internet business as data usage becomes more prevalent and common amongst our customer base (i.e. streaming of video) • Our reliable and robust network of over 625,000 kilometers of fibre is more than any other cable company in North America and provides Shaw with the bandwidth capacity to offer a wide range of high quality, compelling applications 5

2010 Annual General Meeting I. Investor Highlights • We have exceeded 1 million Digital Phone customers since our launch in 2005 and have consistently added approximately 50K new customers per quarter • Over 45% of our basic customers now take our home phone service • Since the launch of our digital rental program in October 2009, we have increased our digital penetration from 40% at the beginning of F2009 to over 70% as at August 31, 2010 • Management targeted 80% digital penetration by the end of F2011 and we believe we are on track to deliver • As of August 31, 2010 we have over 725,000 High Definition (“HD”) cable customers (almost 45% of our digital base) • We continue to expand our HD line-up and at any time our customers now have access to at least 500 HD services • Our satellite business continues its strong performance • The focus on profitable growth and free cash flow generation has not changed • In F09 Star Choice was rebranded as Shaw Direct to strengthen the Shaw brand • We now have over 900,000 satellite subscribers, our margin is approximately 35% and our satellite business now contributes approximately 30% of our consolidated FCF • In March 2010, we announced that we had entered into agreements with Telesat to acquire capacity on a new satellite that is expected to be available in late 2012 • This additional capacity will increase Shaw Direct’s satellite television services by 30% through 16 new transponders 6

2010 Annual General Meeting I. Investor Highlights • In F10 we generated over $3.7 billion in revenue, EBITDA of $1.7 billion and FCF in excess of $500 million • F10 revenue and EBITDA increased 10% and 9% respectively driving sustainable and profitable growth (excludes the impact of CRTC Part II fee recovery) • Upon integration of Canwest (Shaw Media) we will generate annual consolidated revenue of approximately C$5 billion • Shaw continues to be recognized as one of the best operators in North America and maintains superior margins which exceeded 45% on a consolidated basis and 48% for cable for FY 2010 • Shaw has a strong and proven track record of returning capital to shareholders as over $2.1 billion in dividends and share repurchases have been completed since 2005 • Our shares represent a unique investment opportunity of both growth and yield 7

2010 Annual General Meeting I. Investor Highlights • We continue to invest in our wireless initiative and plan to launch the service by 2012 • We selected Nokia Siemens Networks to provide the radio access network and core equipment for our next generation network • During F10, we spent approximately $100 million and we will continue our build in F11 by investing an additional $150 - $200 million on our wireless initiatives • We continue to focus on the Home Office and Small Office business consumers • We believe that this is a natural extension of our residential business and we have the products and services that meet the needs and demands of these business owners (this includes Internet, phone and cable services) • We recently realigned some our business units to form Shaw Business • As we continue to develop our strategic plans and sales force to grow this segment of our business, we believe this simplified organizational structure will enable us to focus and capitalize on opportunities within the small and medium enterprise market in Western Canada • With the addition of Shaw Media and a new wireless product on the horizon, we believe Shaw is positioned to be one of the leading Entertainment and Communications Companies in Canada 8

2010 Annual General Meeting II. Fiscal 2011 Guidance • The competitive environment continues to intensify and we do not expect this to moderate significantly over the coming year • Considering the competitive environment, a certain level of promotional activity within our industry is expected • However, we continue to believe that our products and services provide value to our customers • This includes our focus on customer service which is a key differentiating factor • Looking forward to fiscal 2011, we expect continued growth in our core Cable and Satellite business • Taking competitive market pressures and increased programming costs into consideration, we expect that the growth rate of core consolidated EBITDA will decline modestly compared to F10’s organic growth rate of 7.5% • However, we still expect to generate substantial free cash flow of approximately $550 million which represents a 20% growth rate (excludes CRTC Part II fee recovery in 2010) • Note: core guidance does not include our new media assets which will be immediately accretive to free cash flow • We believe that capital investment will drive growth in our business and allow for the continued launch of new innovative products for our customers • However, for F11, we do anticipate the rate of capital investment to decline from 2010 levels • We also plan to continue our wireless build and we anticipate investing approximately $150 - $200 million on this strategic initiative in F11 Note: F11 guidance information excludes the impact of wireless initiatives 9